Flipkart’s f Qck to take on Amazon’s Kirana now

Flipkart is likely to acquire a majority stake in online fashion retailer Myntra in what could be the biggest consolidation in India's e-commerce sector. BENGALURU: Flipkart, India’s mostvaluable online marketplace, is testing a programme to deliver orders within hours by tying up with neighbourhood merchants, competing directly with Amazon India’s ‘Kirana Now’ initiative launched earlier this year.

For its new hyper-local business called ‘f Qck’, Flipkart has partnered with logistics and delivery startup Roadrunnr, which is backed by Sequoia Capital and Nexus Venture Partners, in Bengaluru, according to two people aware of the matter, declining to be identified.

The company is also in talks with Parcelled to handle deliveries, especially anticipating additional demand during the peak Diwali season, another person said.

"We are doing a ton of stuff (in hyperlocal)," Flipkart Cofounder and Chief Operating Officer Binny Bansal said in an earlier interview with ET. "All I can say is that we are serious about it." Flipkart declined to comment for this story.

A host of new hyper-local delivery startups are threatening the dominance of established online stores with their ability to reach consumers within hours of an order being placed, but the lines between them are blurring with larger companies too keen on offering similar service.

The hyperlocal category is the most-watched this year, with grocery delivery companies such as Grofers and PepperTap raising substantial funding from investors including Sequoia Capital and Tiger Global. Amazon India launched its ‘Kirana Now’ initiative in April to provide express delivery in partnerships with mom-and-pop stores. Amit Aggarwal, head of Amazon India, in an earlier interview said the company was looking beyond grocery to cater to every need that a customer may need "on-demand or quickly."

According to sector experts, ecommerce companies are exploring opportunities with niche startups to venture into the hyperlocal business because large logistics companies such as GoJavas, Ecom Express and Delhivery that focus on the hub-and-spoke model find it difficult to compete in the category.

"Hyperlocal needs depth and fixed costs. There will be specialised companies focusing on within-city delivery. Globally, DHL exited local delivery because they found it hard to do it efficiently and profitably," said Manish Saigal, Managing Director at Alvarez & Marsal, a transport and logistics sector specialist.